Regency Alliance ready to meet new minimum cap
Regency Alliance Insurance says it is considering various options, including acquisitions, to shore up its capital to GH¢10 million by the close of the year in line with new capital requirements set by the National Insurance Commission.
Advertisement
The Chairman of the Board of Directors of Regency Alliance, Mr Musa Badimsugru Adam, told the GRAPHIC BUSINESS shortly after the company’s annual general meeting (AGM) on July 31 that the immediate option was to call on existing shareholders to bring in new funds to meet the capital required.
“There are several ways. The best way is to grow the company from within, but the period is short. One of the options is to fall on existing shareholders. We have the possibility of merging or buying other companies to increase the pace. As the days roll out, we will consult with our stakeholders and the best option will be chosen,” Mr Adam said.
The company, which started about seven years ago, currently has total assets of GH¢12.4 million as of last year, but needs to ramp up its stated capital to GH¢10 million by December 31, 2015.
Regency Insurance increased its profit before tax by 144 per cent from GH¢1.24 million in 2013 to GH¢3 million at the end of last year, and profit after tax by 172 per cent from GH¢784,779 to GH¢2.13 million within the same period.
“As part of efforts to further grow the company as well as to meet the National Insurance Commission’s capitalisation requirements at the end of 2015, the directors recommend not to pay a dividend, despite the commendable results achieved,” Mr Adams said in the chairman’s report to the AGM.
A subsidiary of regency Alliance Plc of Nigeria and minority shareholding by a single Ghanaian investor, the company prefers to hold AGM in public, keeping with good governance practices, although it is not listed on the local bourse.
The board chairman recognised the fast pace at which the company has been growing, saying: “We appreciate the efforts of staff and management who have been working tirelessly. Over the last seven years, every year has been very impressive.”
The non-life insurance company recorded gross premium income of GH¢12.47 million, up by 32.6 per cent over the 2013 figure of GH¢8.38 million, as investment income grew by 91.4 per cent to GH¢946,482 within the period under review.
When asked whether the company intended to list on the local bourse, he stated: “We can’t rule out listing. You start growing and at some point you may invite other shareholders and so this is a possibility but not in the immediate future.” — GB